Ventre v. Pacific Indemnity Company - 419 So. 2d 969 (La. Ct. App. 1982)

Rule:

Even though Louisiana courts have consistently refused to recognize the common law "conditional sale" they have repeatedly held that where all essential elements and conditions for absolute sale are present in a contract between parties, the effect flowing legally from that particular contract follow whether the parties foresaw and intended them or not, and though they may refer to their contract as a conditional sale.

Facts:

Plaintiff vendor entered into the conditional contract whereby he agreed to sell to the vendee a one-half interest in the airplane on an installment basis. The airplane was insured by defendant. After the vendee's first installment payment by check was returned for insufficient funds, the vendor advised him that the deal was off, that he was not authorized to fly the plane, and the vendee was removed from the binder of insurance. The vendor contended that he was entitled to recover under the terms of the insurance policy because the vendee was not a part-owner of the plane and his unauthorized use of the plane constituted theft. The trial court concluded that the sale of the one-half interest in the plane to the vendee was complete at the time of the plane crash.

Issue:

Was the sale of the one-half interest in the plane to the vendee complete at the time of the plane crash?

Answer:

Yes.

Conclusion:

Although the initial payment by check was dishonored, its tender and acceptance indicated that the price and terms of the sale had been agreed upon and the sale was complete. Further, the court found that the vendee's failure to qualify for insurance coverage did not dissolve the contract of right, but rather provided a means for an action for dissolution or a demand for specific performance.